One of the significant highlights of the PETROLEUM INDUSTRY BILL 2012 are the arbitrary powers granted under it. In particular, ministerial power has been consolidated and appears to retain the colossal status of ministerial influence under the Petroleum Act 1969. This is in addition to the new absolute discretionary power granted to the President to grant petroleum prospecting licences and petroleum mining leases under the Bill. Our upcoming papers will spell out some of these powers along with other highlights of the PETROLEUM INDUSTRY BILL 2012. In the meantime, Thisday highlights some of the arbitrary powers introduced in the Bill here.
Yusuf Alli writes on the perceived objections of the multinational oil companies to the PETROLEUM INDUSTRY BILL 2012. Some of the areas of objections mentioned in the article include increase in taxes and royalties and the grant of vast powers to the Minister of Petroleum. It should be noted that the PETROLEUM INDUSTRY BILL 2012 does not explicitly increase royalty rates although it grants the minister powers to determine these rates by regulations. The article can be found here.